How to attract 10,000 dollar millionaires to banks in Belarus?
The European Radio for Belarus tried to find the Belarusian riches. Most likely, a majority of those possessing millions of dollars in Belarus are involved in illegal businesses.
Georgi Badzej, the president of the Belarusian Union of Entrepreneurs and Employers, shares this point of view, too.
“I have serious doubts over this figure. I think it is almost impossible to make this money legally in this country. Perhaps, it is possible to make this money abroad. But, to do that, one has to work abroad, not in Belarus,” he said.
Nevertheless, some riches do submit their income declarations in Belarus. The Ministry of Revenues of Belarus named to our correspondent the biggest income made by a physical entity in 2005.
“The biggest aggravated income declared in 2005 amounted to Br800 million,” the revenue authority said.
The man paid Br 124 million in taxes. Receiving $31,000 monthly, he made his million within almost three years.
According to official statistics for 2005, 25 percent of tax-payers (over 180,000 people) paid a maximum tax rate of 30 percent. Where an ordinary Belarusian can make this money? Economist Aliaksandr Chubryk responds:
“Oh, if I knew you would not be asking me this question, because I would sit quietly somewhere…I think this money can be made in the oil sector or in the car business.
I think this money can be made in the private sector. But, those making this money would definitely keep a low profile.”
Reports about high incomes of those employed in the oil-processing sector are also confirmed by the Ministry of Finances of Belarus. Oil industry employees made an average of Br1 million per month.
PriorBank’s CEO Siargej Kasciuchenka says he wishes to attract the resources of the Belarusian millionaires to bank accounts. No wonder, as PriorBank, one of the leading banks in the country, has only two accounts with over $1 million.
“If we could attract at least 1000 millionaires to our banks, it would amount to $1 billion of resources for the country’s banking system,” Mr. Kasciuchenka noted.
Yet, what should be done with illegal millionaires? Aliaksandr Chubryk continues:
“I don’t think that he wants them to come and deposit their millions. Apparently, what he means is that the government should announce a financial amnesty or something of the kind.
If they were able to expose this money without paying taxes or at least paying a small tax, it could become a very positive contribution to the country’s banking sector and economy in general. It means they could have part of their businesses legalized and put it through banks.
I don’t think it is possible in the near future. I don’t expect the millionaires to do it, because they know very well where they live. The businesspeople in Belarus are very cautious; they don’t long for glory and fame as, for example, in Ukraine or Russia. They are not likely to dash to our banks even if they are promised a financial amnesty.”
In the neighboring Ukraine, Austrian bank Reiffeisenbank-Ukraine has 650 accounts with amounts over $1 million. Mr. Kasciuchenka, however, has not elaborated on how he is going to attract dollar millionaires to the Belarusian banks.
Photo by www.subbota.com
